The digital currency "Trump" ($TRUMP) has experienced a sharp decline in its value since its launch, dropping from its peak of $75 in January 2025 to around $13 currently. This decline is attributed to several interconnected factors, the most prominent of which are:
1. Sharp speculations and mass selling by major investors
After the announcement of an exclusive event for a dinner with President Trump for major investors in the currency, many of these investors sold large amounts of the currency after confirming their participation, leading to a significant drop in its value.
2. Concerns about conflicts of interest and foreign influence
Concerns about conflicts of interest increased after prominent foreign investors participated in the currency, raising questions about their potential influence on U.S. policies.
3. Sudden expansion in supply
Approximately 40 million additional units of the currency were introduced into the market, significantly increasing supply and putting downward pressure on the price.
4. Decline in confidence due to ethical issues
The involvement of President Trump and his family in digital currency projects has raised questions about the use of the position for personal gain, leading to a decline in investor confidence.
5. General market fluctuations
The currency was also affected by general fluctuations in the digital currency market, as markets declined due to new economic policies, such as the imposition of tariffs.
6. Lack of intrinsic value
Being a "meme coin", the currency lacks real economic backing, making it susceptible to sharp fluctuations based on rumors and speculations.
7. Significant losses for individual investors
These factors combined have led to significant losses for individual investors, with reports indicating that a large number of them incurred substantial financial losses.